This application includes material which is subject to copyright protection. The copyright owner has no objection to the facsimile reproduction by anyone of the patent disclosure, as it appears in the Patent and Trademark Office files or records, but otherwise reserves all copyright rights whatsoever.
1. Field of the Invention
The present invention relates generally to the field of disseminating loan program information, including rate information, and to automated systems for collecting and disseminating loan information.
2. Related Art
Home mortgages, home equity loans, auto loans, and other lending products may be distributed through a variety of channels, brokers, and correspondents. Particularly in the case of complex mortgage loans, there may be variable xe2x80x9cpointsxe2x80x9d and a complex set of additional adjustments to the loan rate based on the presence or absence of a variety of factors. In the past, current rates and points from particular lenders (including required adjustments) have been published to these sales channels via fax. There have also been efforts to automate the calculation of such adjustments by receiving the text of the lender""s fax sheet and parsing it analytically to apply necessary adjustments based on applicant information. Such efforts have not, however, been entirely successful in providing a user friendly and accurate interface.
An article by Jeff Butler entitled xe2x80x9cPartnership Bridged with Technologyxe2x80x9d, Mortgage Banking v53n11, pp. 12-19, August, 1993, generally suggests systems for allowing electronic communications links between a mortgage company and its customersxe2x80x94brokers, correspondent lenders, real estate agents, and consumers. The article specifically discloses Citicorp""s MortgagePower Plus system and Countrywide Funding Corp.""s DirectLine Plus system. MortgagePower Plus provided software which permitted loan purchasers to select between loan types, enter their data and prequalify themselves, and obtain a loan commitment from the mortgage company. DirectLine Plus includes software which provides brokers with online access to Countrywide""s current loan data and the ability to lock-in a particular loan.
An article by Norman Miller entitled xe2x80x9cWeb Implications and Resources for Real Estate Financexe2x80x9d, Real Estate Finance, v13n3, pp.74-83, Fall, 1996, discloses various Internet- and intranet-based systems for processing loan applications. Miller further discloses providing electronic forms which xe2x80x9ccan be programmed to check to see if all the necessary information is included prior to transmission . . . .xe2x80x9d
An article by Tami Luhby entitled xe2x80x9cLoan Processing System Offers Internet Data Accessxe2x80x9d, American Banker, v163, p.12, Jun. 30, 1998, discloses an online database with wholesale lenders"" fees, rates, and product information. The publication also discloses online loan application processing. An article by Steven Marjanovic entitled xe2x80x9cIntuit Investing $6M in Loan Processing Service for Webxe2x80x9d, American Banker, v163n116, p.13(1), Jun. 19, 1998, discloses an Internet loan processing service website (xe2x80x9cquickenmortgage.comxe2x80x9d) which uses loan information from lenders and allows consumers to enter data, get mortgage rate quotes, and submit loan applications.
Other references generally showing electronic means for processing loan or other applications include U.S. Pat. No. 4,194,242 to Robbins, U.S. Pat. No. 4,876,648 to Lloyd, U.S. Pat. No. 5,239,462 to Jones, et al., U.S. Pat. No. 5,523,942 to Tyler, et al., U.S. Pat. No. 5,611;052 to Dykstra, et al., U.S. Pat. No. 5,673,402 to Orion, et al., U.S. Pat. No. 5,699,527 to Davidson, U.S. Pat. No. 5,6742,775 to King, and U.S. Pat. No. 5,765,144 to Larche, et al.
In view of the above, there is a need for a system and method which provides access to information on a variety of loan programs from different lenders, yet is accurate and results in correct calculations (including adjustments) of loan rates and points by brokers and other correspondents.
In a preferred embodiment, the invention provides a computer system that enables mortgage lenders and commercial banks to transmit their data daily easily and inexpensively via the Internet. The system enables mortgage brokers, correspondents and retail consumers to download or access the data live via the Internet, automatically search, calculate and apply appropriate adjustments to loan rates and points, and electronically register selected products with the selected lenders.
In its preferred embodiment, the invention provides an automated system for collecting and disseminating loan information over a network connection which includes a server which receives loan data, including daily loan data, from lenders and stores the loan data in a database. A web server provides to users (e.g., brokers, correspondents, or retail loan customers) interactive web content including loan information and a list of loan criteria which would affect the quoted points, rate, cap, or margin associated with a particular loan. The web server receives a user""s applicable loan criteria selected from the list of possible loan criteria. And uses that applicable loan criteria and the loan data from the lender to create a list of adjustments to the points, rate, cap or margin. A quoted interest rate and the list of points and applicable adjustments are transmitted by the web server to the user.
By using the Internet, the preferred embodiment eliminates the costly and time-consuming tasks of transmitting product data and loan lock registration forms via the fax. It eliminates the need for brokers and correspondents to calculate rate and cost adjustments manually and for lenders to check the calculations manually. By enabling electronic selection and registration of loan products the system of the invention reduces the cost to brokers and correspondents and eliminates the risk that brokers and correspondents currently experience because of the inevitable lag time between the time a broker faxes a loan order and the lender verifies the adjustment calculation and locks the rate.